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Monday, 12 July 2010 12:15 |
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Written By Larry Beebe
Bond Beebe
P: 301.272.6025 E:
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A U.S. District Court in Northern Indiana rejected claims by Carpenter’s Employee Benefit Funds to hold the President of a bankrupt company liable for unpaid contributions.
The court explained that the Funds were required to show that “the corporate form was so ignored, controlled or manipulated that…the misuse of the corporate form would constitute fraud or promote injustice.”
In considering whether to impose individual liability, the BNA Pension and Benefits Reporter in its June 22, 2010 issue stated that “courts consider factors including undercapitalization, lack of corporate records, shareholders’ fraudulent representations, use of the corporation to promote illegal activities of fraud, the payment of individual debts, commingling of assets and the failure to observe corporate formalities.
The court concluded that there was no evidence in this case that the employer should have been personally responsible. |
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Friday, 09 July 2010 10:22 |
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Written By Phil Vivirito
Bond Beebe
P: 301.272.6090 E:
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Usually receiving payroll records in a PDF format has the same flexibility as having a hard copy. I have seen auditors print out the PDF records and simply use the hard copy!
As a useful measure, request that the employer make the PDF file searchable. You can use the search function to navigate around the file. You may also inquire if the employer can change the sort order of the records to make it easier for your use. For example if the payroll is in clock number order, ask for it to be resorted to alpha order. Lastly, become familiar with using a PDF and understand its capabilities, such as highlighting, adding text and adding tick marks.
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Thursday, 01 July 2010 08:46 |
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Written by Phil Vivirito
Bond Beebe
P: 301.272.6090 E:
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If the employer is running you an electronic report from their payroll, ensure you ask the following few, but very important, questions:
Is this the entire payroll? The employer may be producing a query just for your audit and exclude certain job classes or only include employees that they are reporting. The employer may forget about terminated employees and only include currently active ones.
Are all pay types or pay codes included? The employer may believe that certain hours do not have to be reported and take them out of the report. Or, the employer may inadvertently leave a code out. You should ask for W-2’s to test for these problems.
What are the pay periods? Make sure you know what week ending dates are being used for the report. Do these periods match the contribution week ending periods?
How will the report be provided and in what format? Will it be emailed to you or copied to a CD? Will it be in Excel, a text file, or a PDF? If you can, you should request the format and mode that will work best for you.
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Thursday, 24 June 2010 08:51 |
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Written By Phil Vivirito
Bond Beebe
P: 301.272.6090 E:
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
You have called an employer to schedule a payroll audit and the employer states ‘I’ll save you the trip; I can easily send you the payroll in an electronic format.’ Thinking about the travel expense savings you happily say yes. So now you await the records arrival and make your plan for doing the audit in your office. When the records do arrive they are usually in one of the following formats: PDF, a custom report run by the employer, or a report directly from the employer’s payroll processor such as ADP.
But is it really that simple? Did you ask the employer the right questions about these records? Did you know what format the records will be in? And was the whole process really worth it?
Over the next few blogs we will look at the possible answers to these questions by discussing the following:
1. What questions should you ask the employer?
2. How to use PDF records.
3. How to use the custom report.
4. How to use the payroll processor report.
5. Was it worthwhile to have the records sent? |
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Page 10 of 11 |
Payroll Auditing: A Guide for Multi-Employer Plans